AI Applications in E-Commerce: A Literature Review

This assignment is a literature review on the applications of Artificial Intelligence (AI) in E-commerce. It covers various topics such as business intelligence, e-commerce models, sentiment analysis, and more. The assignment is based on a collection of research papers and articles that discuss the impact of AI on the E-commerce industry. It provides an overview of the current state of AI applications in E-commerce and identifies areas where further research is needed.

E-Business Applications

Table of Contents
INTRODUCTION...........................................................................................................................1
BODY OF THE REPORT...............................................................................................................1
Briefly mention the current operations of your selected E-commerce store..............................1
Discuss why Artificial Intelligence is very important for the business survival of selected
firm..............................................................................................................................................2
Describe the manner in which selected business uses Artificial Intelligence to perform their
business operations......................................................................................................................3
Further research in the peer reviewed recent journal articles in ProQuest..................................4
CONCLUSION................................................................................................................................6
Recommendations to increase effectiveness of e-store by using internet technologies..............7
REFERENCES................................................................................................................................8

INTRODUCTION
Information and communication technology plays an important role in today's
organisation and assists them within carrying out their operations. Electronic commerce refers to
utilisation of electronic medium by which commercial transactions can be carried out in an
appropriate manner (Grossman and et. al, 2013). Artificial intelligence denotes simulation of
human processes through the utilisation of systems. This report is based on eBay Australia is a
multinational e-commerce firm and facilitates business to consumer and consumer to consumer
sales via their website. They provide their customers with instant buy. This report comprises of
operations of firm, role of artificial intelligence and its utilisation. Along with this, some articles
have been analysed and recommendation is given with respect to that.
BODY OF THE REPORT
Briefly mention the current operations of your selected E-commerce store
To prepare this report, eBay Australia is selected. eBay Australia is a multinational
company which is headquartered in California, USA. This company serves worldwide and offers
online shopping services to their customers (Camarinha-Matos, Afsarmanesh and Rabelo, 2013).
This company also has wide presence in Australia. In Australia, there are different operations of
eBay Australia which benefits them in competing with other E-commerce stores in an
advantageous manner. Current operations of concerned company in Australia are mentioned
below:
 Mass customisation: It is the way to deliver wide-market services and goods that are
improved to fulfil the requirements of customers in a proper manner. It is a marketing
technique which is used by eBay to maintain low unit costs. This benefits eBay in
changing slight features of a product according to the desire of customers without
increased overall cost.
 Customer centred strategies: Another important operation of eBay is to prepare those
strategies which are in favour of customers so that concerned organisation can gain
maximised sales. For example, By providing discounts and attractive offers to their
customers, company gains their trust. This benefits the company in retaining their
customers for a long time period (Cassidy, 2016).

 Customer fulfilment network: This operation of company emphasize on augmenting
gross profitability by purchasing products such as books, accessories and equipments
directly from manufacturers without involving any intermediaries. This operations
benefits, eBay Australia in saving their extra costs due to which they are able to sell
products to their customers in affordable rates (Chang and Graham, 2012).
 Quick shipment: Another efficient operation of eBay is to provide hassle free delivery
of products to the customers. All the products which are ordered by customers reached
them before the estimated delivery time. This benefits the company in earning wide
appreciation from customers. It helps the concerned firm in competing with other online
retailers in an advantageous manner.
Discuss why Artificial Intelligence is very important for the business survival of selected firm
Artificial intelligence is defined as a field in computer science which focuses on creating
intelligence machines which can work like humans. Artificial intelligence is also known as
machine intelligence. In this technology, smart work is performed by machines not by any
person. With the help of Artificial Intelligence, organisations such a eBay Australia is able to
perform their work in a systematic manner without spending high costs on the training and
development of employees (Chen and Zhang, 2013). Installing Artificial Intelligence for the first
time is a costly process due to its high advantages and costly equipments, but after installation it
offers numerous benefits due to which overall production and management cost of a eBay
Australia will decrease. As technology is getting advanced day by day, people prefers to perform
their daily activities with the help of internet. Due to this, they are not required to appear
physically at any location to purchase something. But offering different services via digital
media is not easier for business firms as to deal with online customers, educated and skilled
workers are required. Providing training to employees to use internet and interact with customers
is time and cost consuming process.

(Source: AI & eCommerce, 2019)
To overcome this problem, business firms have adopted new technologies like
Automation and machine learning which are parts of Artificial Intelligence (Enkel and Mezger,
2013). Without AI, it is not possible for eBay Australia to manage their millions of customers in
a timely manner. This can create a negative image of company on the minds of customers. Due
to this, reputation of company can reduce which can impact the revenues and profits of eBay
Australia in a negative manner. AI has transformational impact on the survival of eBay Australia
as it helps in unleashing those information which will be trapped if traditional methods to
process data will be used (Gloor, 2012). This helps the concerned company in gaining high
competitive advantage over rival organisations in a proper manner.
Describe the manner in which selected business uses Artificial Intelligence to perform their
business operations
AI is a boon for E-commerce sector. This is because this industry is reliable for internet
to perform their basic business operations. Due to AI, concepts like Automation and Machine
Illustration 1: AI & eCommerce

learnings have emerged which helps an organisation in managing their complex tasks without
any human efforts. In case of eBay, company uses AI to perform their business operations so that
all the work can be performed in a systematic manner. Importance of AI in working of eBay
Australia is mentioned below:
 Automated product description: One of the appreciable talent in AI is its capability to
create automated content. E-commerce platforms such as eBay Australia die and live by
the description of products (Grossman and et. al, 2013). Even if image of products is not
appealing, a detailed description helps in gaining the attention of customers. Writing
description for each product is very time consuming and costly. AI is capable to copy
product information for manufacturer site and transferring it to the products which are
offered at e-commerce store. This benefits an organisation in saving their revenues and
important time.
 Smart product recommendation: AI is able to recommend quality products as per the
needs of customers. Due to the interconnectivity of Big Data and AI, processing system
in Artificial intelligence is able to identify the search inquiries and purchasing history of a
consumer. This power of AI is matchable with the power of another technologies and
benefits eBay Australia in serving their customers in an efficient manner. Due to this
feature of AI, customer retention of eBay Australia is high and customers are highly
satisfied with their services.
 Intelligence search: With the help of AI, employees in eBay Australia are able to
perform intelligent searches. Search which is carried out by AI helps the employees of
concerned company in identifying the last purchase for their product and what is the
response of people toward that product (Marques, García and Sánchez, 2013). If some
service or product is not appreciated by people, company Carried out required changes in
it. This assists the eBay Australia in maximising their sales.
Further research in the peer reviewed recent journal articles in ProQuest.
E-commerce technologies aids organisation in collection of large amount of information
with respect to their customers, habits of customers, their frequencies along with amounts of
purchases that has been carried out. It will assist eBay Australia to gather significant data and
orient strategic information through which tactical decisions can be formulated (Khan and
Quadri, 2012). Through the utilisation of e-commerce marketing standards has been increased.

As the AI applications ranges from analysation of data sets, identification of patterns as well as
creation of personalised experience.
At present scenario, millions of users are making use of online mediums for giving their
opinions on products, quality, benefits, features as well as other values related with the products.
As ebay is an online service provider it is crucial for them to analyses each and every aspect
carefully to deliver the best services to their customers. For this, it is necessary that
communication must be carried through different mediums through which customer's experience
can be acknowledged and accordingly services must be provided to them. E-commerce involves
business to business that denotes that cost with respect to transactions can be cut short among
businesses and their customers. This will be denoted via sales of services and goods. Some
organisations makes use of sentimental analysis model through which sentiments or opinions can
be extracted from their reviews that are made by them on shopping websites, forums or blogs
(Improving Customer Experience Using Sentiment Analysis in E-Commerce, 2017). Basically,
artificial intelligence machines are being utilised for identification of information which is
contained within text. Through this, firms like eBay Australia can improvise their services as
well as products. Artificial intelligence will lead them to analyse as well as identify the
behaviour of their customers and patterns in which they make purchases. This will lead them to
have enhanced business opportunities and formulate their decisions accordingly (Marques,
García and Sánchez, 2013).
Organisations are making use of artificial intelligence within their activities. For an
instance some firms are using AI in their services as well as products like Apple, Intel, etc. When
e-commerce will be merged with artificial intelligence then better results can be attained (Ray,
2012). It is important for firms who are delivering their services through online medium to
analyse customer relationship models but along with this AI must be integrated this must be
provided within mobile-CRM for accessing the information which will lead business to move
forward. AI will lead customers to buy services and products in convenient manner. It will alter
the ways in which which firms communicate with their customers. For this, eBay Australia can
communicate with marketing and sales services for integrating with contact media like computer,
TV, telephone through Wi-Fi environment (The analysis of model for electronic commerce -
artificial intelligent, 2017). Furthermore, mobile commerce involves customer database and
CRM. It is not feasible to have higher amonut of intelligence from a humans team as it is

virtually impossible. For this, cloud computing can be utilised so that information (real-time or
statistical data) can be communicated. This information can be organised as well as translated by
which solutions can be triggered for specified actions. If ebay Australia will make use of mCRM
along with artificial intelligence they can new opportunities as well as improvise their business &
be competitive within the market.
E-commerce giants such Flipkart, eBay and Amazon are at the edge of machine learning
as well as artificial intelligence. Through this firms can identify fake reviews, manage big data
along with product recommendation. Artificial mining is categorised into machine language,
natural language processing and data mining (THE COLOSSAL IMPACT OF ARTIFICIAL
INTELLIGENCE IN E-COMMERCE : STATISTICS AND FACTS, 2019). These areas will
lead e-businesses to grow as data mining will assist them to extract huge amount of current and
historical data through utilisation of OLTP (online transaction processing) and OLAP (online
analytical processing) respectively for predicting future. NLP will emphasise on the way in
which systems as well as humans communicate with one other via natural languages. In case of
machine learning, it acts as an extraordinary domain in which machines are programmed with
respect to past as well as examples for finding out the solution for specified problem. AI within
e-business will not only lead to minimisation of cost but also will reduce the time complexities
while carrying out repetitive tasks (Rishi and Sharma, 2017).
With the evolution of internet, e-commerce has became an crucial way through which
businesses carry out interaction with enterprises. By constructing E-commerce management
performance model on the basis of AI firms might have enhanced opportunities (Construction of
E-commerce Management Performance Model based on Artificial Intelligence Technology,
2017). Through, applications of e-commerce platform, recommendations can be given to
customers with respect to interest of users as well as their characteristics so that process of
logistics distribution can be optimised. Within e-commerce activities, workflow systems exist
within each stage while carrying out processes associated with transactions that are carried out
which ranges from customer's search for services till they are being delivered (Suciu and et. al,
2012). Each part is independent of sub-workflow processes which means that there is no impact
of the other sections.
Development within pricing strategies and inventory research are time consuming
activities which needs data scientist. For this AI and ML can be utilised for handling these tasks

as well as generate automated processes. This can be understood by an example, if eBay
Australia make use of AI then purchases will be instantly generated in which there is higher
demand within the market. This will lead management of e-commerce firm to acknowledge that
which products in a real-time environment have ran out of the stock (The role of Artificial
Intelligence (AI) in making accurate stock decisions in E-commerce industry, 2018). This
denotes that less time is required within estimation of stock. It will also assist within carrying out
effectual interaction with their buyers. This denotes that e-businesses can handle their inventory
through AI algorithms as they will provide predictive analytics. This will lead them to have
improvised resource utilisation and productivity within the warehouse (Segovia, Szczepaniak
and Niedzwiedzinski, 2013).
CONCLUSION
From the above report, it has been concluded that information & communication
technology is favourable in E-commerce businesses to conduct operations effectively. It include
various technological applications which plays an important role in terms of increase
productivity and effectiveness of products & services. However, it includes the approach of
artificial intelligence which is suitable investigate regarding real time data which is responsible
for facilitating more efficiency as well as competence in business. Moreover, AI is much
effective to maintain overall data of customers and maintain their order in accurate manner.
Additionally, it is helpful to improve services which increase sales and profitability along with
client satisfaction respectively.
Recommendations to increase effectiveness of e-store by using internet technologies
There are some recommendations which can be given to the manager of company so that
their e-commerce store can became more efficient. This will help them to serve their customers
in satisfactory manner. These recommendations are mentioned below:
 Manager of company is recommended to use IT like Automation, NLP, deep learning etc.
With the help of these information technologies, manager in eBay Australia will be
capable to transform decision making, extract new insights and gaining beneficial
outcomes of business. This will help the company to earn wide profits and revenues.

 Another recommendation for manager in eBay Australia is to train their employees of
using internet , AI, Automation etc. By using internet technologies, eBay Australia can
connected thousands of computers that works in a systematic manner to solve
complexities related with business around globe. This will help the company to sustain
positive image in global manner.

REFERENCES
Books & Journals
Camarinha-Matos, L. M., Afsarmanesh, H. and Rabelo, R. J. eds., 2013. E-business and Virtual
Enterprises: managing business-to-business cooperation (Vol. 56). Springer.
Cassidy, A., 2016. A practical guide to planning for E-business success: how to E-enable your
enterprise. CRC Press.
Chang, K. P. and Graham, G., 2012. E-Business Strategy in Supply Chain Collaboration: An
Empirical Study of B2B E-Commerce Project in Taiwan. International Journal of
Electronic Business Management, 10(2).
Chen, Q. Y. and Zhang, N., 2013. IT-supported business performance and e-commerce
application in SMEs. Journal of Electronic Commerce in Organizations (JECO), 11(2),
pp.41-52.
Enkel, E. and Mezger, F., 2013. Imitation processes and their application for business model
innovation: An explorative study. International Journal of Innovation
Management, 17(01), p.1340005.
Gloor, P., 2012. Making the e-business transformation. Springer Science & Business Media.
Grossman, R. L. and et. al, 2013. Data mining for scientific and engineering applications (Vol.
2). Springer Science & Business Media.
Khan, R. A. and Quadri, S. M. K., 2012. Business intelligence: an integrated approach. Business
Intelligence Journal, 5(1), pp.64-70.
Marques, A. I., García, V. and Sánchez, J. S., 2013. A literature review on the application of
evolutionary computing to credit scoring. Journal of the Operational Research
Society, 64(9), pp.1384-1399.
Ray, P. K., 2012. Integrated management from e-business perspective: Concepts, architectures
and methodologies. Springer Science & Business Media.
Rishi, O. P. and Sharma, A. eds., 2017. Maximizing Business Performance and Efficiency
Through Intelligent Systems. IGI Global.
Segovia, J., Szczepaniak, P. S. and Niedzwiedzinski, M. eds., 2013. E-commerce and Intelligent
Methods (Vol. 105). Physica.
Suciu, G. and et. al, 2012. ERP and e-business application deployment in open source distributed
cloud systems. In The Eleventh International Conference on Informatics in Economy
IE (pp. 12-17).
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